Coronavirus outbreak projected to have impact on P.E.I.'s economic growth
'Tourism plays a big role in P.E.I. and Chinese tourists play a big role in supporting the tourism activity'
P.E.I. and B.C. are expected to lead the country in economic growth in 2020 despite concerns about the impact of coronavirus on tourism and other business, according to the Conference Board of Canada.
The board's provincial outlook summary shows P.E.I. and B.C. with growth above three per cent in 2020. The average across all provinces is below two per cent.
Coronavirus is expected to lower tourism spending across Canada by around $550 million in the first half of this year.
The board said the largest dollar-value impact will be felt in British Columbia, while the largest proportional impact will occur in P.E.I., where tourism is an important contributor to the local economy.
Pedro Antunes, the chief economist with the board, said P.E.I.'s growth projection would have been higher until the impact of the virus was factored in.
'Tourism plays big role'
"Tourism plays a big role in P.E.I. and Chinese tourists play a big role in supporting the tourism activity in P.E.I., so that will affect accommodation, food and other service sectors in the province this year," he said.
"Growth in P.E.I. would have been just even that much more stronger ... if it hadn't been for this kind of weaker tourism outlook that we've already got in the cards."
Antunes said the virus will also impact the lobster market, both in price and in exports.
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With files from Angela Walker